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| Pension project criticised by MP | |
| (about 2 hours later) | |
| A scheme set up to assist workers who lost pensions when companies went bust has cost twice as much to run as it has paid out, an MP has claimed. | A scheme set up to assist workers who lost pensions when companies went bust has cost twice as much to run as it has paid out, an MP has claimed. |
| Cardiff Central MP Jenny Willott said the Financial Assistance Scheme (FAS) had cost £10m but had paid just £4.35m. | Cardiff Central MP Jenny Willott said the Financial Assistance Scheme (FAS) had cost £10m but had paid just £4.35m. |
| The plight of steelworkers in Cardiff firm ASW contributed to the decision to set up the FAS in 2004. | The plight of steelworkers in Cardiff firm ASW contributed to the decision to set up the FAS in 2004. |
| The Department for Work and Pensions (DWP) said significant costs in setting up the FAS had been inevitable. | The Department for Work and Pensions (DWP) said significant costs in setting up the FAS had been inevitable. |
| Lib Dem MP Jenny Willott said that over three years the FAS had paid out £4.35m to 1,166 members, including 31 former ASW staff. | |
| She said the figures showed the FAS was "clearly not working". | She said the figures showed the FAS was "clearly not working". |
| FAS was an entirely new scheme which meant there was inevitably going to be significant costs in setting up the operation DWP spokesperson | FAS was an entirely new scheme which meant there was inevitably going to be significant costs in setting up the operation DWP spokesperson |
| "It costs twice as much to run as it has paid out, only a tiny number have received payments and even then, the scheme provides just 60% of people's pension savings," she said. | "It costs twice as much to run as it has paid out, only a tiny number have received payments and even then, the scheme provides just 60% of people's pension savings," she said. |
| "If a pension scheme collapses today, people can guarantee to see 90% of the pension they saved for. | "If a pension scheme collapses today, people can guarantee to see 90% of the pension they saved for. |
| "Why should ASW workers have to suffer with this third rate scheme that is slow to payout, costly to run and stingy?" | "Why should ASW workers have to suffer with this third rate scheme that is slow to payout, costly to run and stingy?" |
| Ms Willott called on Work and Pensions Secretary Peter Hain "to ensure that pensions justice is finally done" when the Pensions Bill returns to the House of Commons in the next few weeks. | |
| "He has the opportunity to make a real difference to people's lives and give proper support for all those who have lost their hard earned pensions through no fault of their own. I will be writing to urge him to do so." | "He has the opportunity to make a real difference to people's lives and give proper support for all those who have lost their hard earned pensions through no fault of their own. I will be writing to urge him to do so." |
| Rising totals | Rising totals |
| A Department for Work and Pension spokesperson said the first FAS payments had been made at the end of 2005 and released slightly different figures than those from Ms Willott. "We have now paid out more than £4.93m to 1,293 people and these totals will continue to rise," added the spokesperson. | |
| "FAS was an entirely new scheme which meant there was inevitably going to be significant costs in setting up the operation. | "FAS was an entirely new scheme which meant there was inevitably going to be significant costs in setting up the operation. |
| "Once all the pension schemes have completed winding up and FAS assessments have been completed, we expect the annual running costs to be much lower than the current ongoing estimate of £3 to £4 million a year. | "Once all the pension schemes have completed winding up and FAS assessments have been completed, we expect the annual running costs to be much lower than the current ongoing estimate of £3 to £4 million a year. |
| "Balanced against this, by 2015/16 FAS is expected to be paying over £100m a year to qualifying members and their survivors." | "Balanced against this, by 2015/16 FAS is expected to be paying over £100m a year to qualifying members and their survivors." |